By Andrew R. Johnson
Fifth Third Bancorp is facing a Justice Department investigation
over whether it engaged in discriminatory auto-lending practices,
the bank said Thursday in a regulatory filing.
The Cincinnati lender said it is cooperating with the
investigation of the bank's "indirect automobile loan
portfolio."
Such loans are provided by lenders to consumers through auto
dealerships.
A spokesman for Fifth Third declined to comment.
The Justice Department and Consumer Financial Protection Bureau
have been investigating whether lenders' practices have led to
discrimination against women and minorities. The probes focus in
part on a practice in which auto dealers can mark up the rates
offered on loans to consumers, known as a dealer participation
fee.
Regulators have stressed that lenders can be held responsible
for such practices if it leads to discrimination against
borrowers.
Ally Financial Inc. in December agreed to pay $98 million in a
settlement with the Justice Department and CFPB over allegations
that it discriminated against borrowers. The company didn't admit
wrongdoing.
--Alan Zibel contributed to this article.
Write to Andrew R. Johnson at andrewr.johnson@wsj.com
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